Manufacturing Zebra ACSR conductors saving valuable foreign exchange:

Kelani Cables profits up

Charumini de Silva

Despite the global economic meltdown Kelani Cables PLC recorded a Rs. 164.3 million profit by the end of December 2009 compared to Rs. 21 million in 2008, Kelani Cables PLC Managing Director, Hemantha Perera told Daily News Business.

Company will record a turnover of more than Rs. Three billion in the financial year of 2009-2010 while maintaining a growth rate of 15 percent, he said.

“There was no impact to our business from the global financial decline as the company engaged in various branding programs during that time, which eventually became a positive point for the company by the end of the year”, he said.

Kelani Cables PLC has manufactured Zebra ACSR conductors for the first time in Sri Lanka. These conductors are supplied to the Ceylon Electricity Board (CEB). The Zebra ACSR conductors are generally used to transmit power at medium and high voltages. The Zebra ACSR conductor was earlier imported by CEB and the introduction of the Kelani Cables Zebra ACSR conductor saves a huge sum of the country’s foreign currency flowing out of the country and also encourages the local industry.

He said that the company expects to invest more on machinery in the coming year for the production of such conductors.

Perera said that Kelani Cables has placed its name in the export market with regular supplies of power cables to India, the Maldives and Bangladesh.

During the global economic downturn, there was a slight impact on the export market as countries such as the Maldives and Bangladesh were affected.

“Our enamelled winding wires are exported indirectly to European countries. The African continent is a new market, which is expanding, but the cost of shipping is comparatively high. However, we are keen on expanding our export network and increase the percentage of the export performances this year,” he said.

He said that protecting the local industries under the Mahinda Chinthana program was a great encouragement to a local industry like Kelani Cables PLC.

It is vital to encourage the Sri Lankan entrepreneurs to come up with innovative products and save the foreign exchange of the country that is flowing out of the country when importing these products.

The key Government departments such as the CEB, the Lanka Electricity Company, the Sri Lanka Telecom and the Sri Lanka Railway Department are serviced directly by the company. At present Kelani Cables PLC is contributing for many major development projects in the country.